Complete Summary and Solutions for Formation of a Company – NCERT Class XI Business Studies, Chapter 7 – Explanation, Questions, Answers

Comprehensive summary and explanation of Chapter 7 'Formation of a Company' from the Class XI Business Studies textbook, detailing the stages of company formation including promotion, incorporation, and capital subscription; roles and functions of promoters; necessary legal documents such as Memorandum of Association and Articles of Association; importance of the Certificate of Incorporation; procedures for raising capital; and relevant legal provisions, with all NCERT questions, answers, exercises, and project assignments.

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Categories: NCERT, Class XI, Business Studies, Chapter 7, Company Formation, Incorporation, Promotion, Capital Subscription, Summary, Questions, Answers, Explanation

Tags: Formation of a Company, Business Studies, NCERT, Class 11, Promotion, Incorporation, Certificate of Incorporation, Memorandum of Association, Articles of Association, Capital Subscription, Promoters, Summary, Explanation, Questions, Answers, Chapter 7

Formation of a Company - Class 11 Business Studies Chapter 7 Ultimate Study Guide 2025

Full Chapter Summary & Detailed Notes - Formation of a Company Class 11 NCERT

Overview & Key Concepts

Chapter Goal: Understand stages in company formation (promotion, incorporation, capital subscription), promoters' role, key documents (MOA/AOA), and certificates. Exam Focus: 3 stages, 5 MOA clauses, promoter functions, differences MOA vs AOA; 2025 Updates: OPC evolution, digital filing via MCA portal. Fun Fact: Avtar's carburettor story shows risk in innovation. Core Idea: Complex legal process for separate entity; links to Ch8 sources of finance. Real-World: Startup boom needs quick incorporation. Expanded: All subtopics point-wise with evidence (e.g., Avtar for feasibility), examples (e.g., name clause pitfalls), debates (e.g., promoter liability).
Wider Scope: From idea to operations; sources: Avtar case, tables on MOA/AOA forms, Emblem Act.
Expanded Content: Include modern aspects like SPICe+ form for incorporation; point-wise for recall; add 2025 relevance like e-MOA.

Introduction & Stages

Case: Avtar (engineer turning carburettor idea into company due to funds/risk).
Why Company?: Large capital, risk-sharing, perpetual succession.
3 Stages: (i) Promotion (idea to feasibility); (ii) Incorporation (legal birth); (iii) Capital Subscription (fund-raising; skipped for private cos).
Example: Private vs Public: Private skips prospectus/min subscription.
Practical Difficulties: Legal compliance delays; Solutions: Professionals (CA/CS).
Expanded: Evidence: 1.5M+ companies registered via MCA; debates: OPC vs traditional; real: Post-2020 online filings.

Conceptual Diagram: 3 Stages Flow

Linear flowchart: Idea → Promotion (feasibility/docs) → Incorporation (ROC filing/CIN) → Capital (SEBI/prospectus/allotment). Arrows show sequence; branches for private/public. Visualizes progression; ties to promoter role.

Why This Guide Stands Out

Comprehensive: All stages point-wise, case integrations; 2025 with DIN/OPC updates, documents analyzed for clauses.

Promotion: First Stage

Promoter Definition: Person/group conceiving idea, taking steps/risks (Sec 69: named in prospectus/control/adviser; excludes professionals).
Functions: (i) Identify opportunity; (ii) Feasibility (technical: tech availability; financial: funds estimate; economic: profitability); (iii) Name approval (3 options, avoid undesirable per Name Clause); (iv) Fix signatories/directors; (v) Appoint professionals; (vi) Prepare docs.
Name Clause Pitfalls: Identical/misleading/Emblem Act violation (e.g., no UNO/India Flag use).
Example: Avtar: Technical (metal import issue), Financial (crores needed).
Expanded: Evidence: ROC rejects 20% names; debates: Promoter fiduciary duty; real: Startup accelerators aid feasibility.

Incorporation: Legal Birth

Application: To ROC with docs (MOA/AOA stamped/signed; director consent; agreement; declaration; fee).
Key Documents: MOA (Table A-E; clauses: Name, Office, Objects, Liability, Capital; min 7/2 signatories); AOA (Table F-J; internal rules, subsidiary to MOA); Consent (qualification shares); Agreement (MD); Declaration (CS/CA); Fee (on capital).
Certificate of Incorporation: Conclusive evidence (birth date; CIN allotted); validates even flawed docs (e.g., forged signatures valid).
Commencement Certificate: Within 180 days for public/private; enables business.
Example: Preliminary Contracts: Pre-incorp not binding; promoters liable unless ratified.
Expanded: Evidence: DIN mandatory for directors; debates: Conclusiveness protects vs scrutiny; real: 2025 e-filing reduces time to 1 day.

Exam Case Studies

Avtar's promotion; MOA objects limit; Certificate conclusiveness examples.

Capital Subscription: Fund-Raising

Steps for Public Co: (i) SEBI approval (disclosures); (ii) File prospectus (invitation; no misstatement); (iii) Appoint bankers/brokers/underwriters; (iv) Min subscription (90% per SEBI); (v) Stock exchange listing (10 weeks); (vi) Allotment (return to ROC; refund excess).
Private/OPC: No public issue; OPC: Single member, nominee, natural Indian resident; limits (no NBFC, convert after 2 yrs if capital/turnover exceeds).
Example: Prospectus: Mis-statement liable; Min sub prevents underfunding.
Expanded: Evidence: SEBI protects investors; debates: Underwriting necessity; real: IPO boom 2025.

MOA vs AOA & Promoter Position

Differences: MOA (charter, external, invalid beyond); AOA (rules, internal, ratifiable).
Promoters: Fiduciary (no secret profit); liable pre-incorp; no auto remuneration (reimbursable).
Key Themes & Tips: Stages sequential; Tip: Use table for MOA clauses; debate: OPC for solo entrepreneurs.

Project & Group Ideas

Group: Simulate ROC filing; individual: Analyze Avtar feasibility.
Debate: Promoter liability vs innovation risk.
Ethical role-play: Name clause violations.

Key Definitions & Terms - Complete Glossary

All terms from chapter; detailed with examples, relevance. Expanded: 30+ terms grouped by stage; added advanced like "SPICe+", "DIN" for depth/easy flashcards.

Promotion

First stage: Idea to feasibility. Ex: Avtar's carburettor. Relevance: Risk assessment.

Promoter

Person/group forming company (Sec 69). Ex: Avtar. Relevance: Fiduciary duty.

Feasibility Studies

Technical/financial/economic checks. Ex: Metal import. Relevance: Viability test.

Name Clause

Undesirable names rules. Ex: No identical/misleading. Relevance: ROC approval.

Memorandum of Association (MOA)

Charter defining objectives (5 clauses). Ex: Objects limit activities. Relevance: External relations.

Articles of Association (AOA)

Internal rules (subsidiary to MOA). Ex: Director qualification shares. Relevance: Management rules.

Objects Clause

Purpose of company. Ex: Main/incidental acts valid. Relevance: Ultra vires invalid.

Liability Clause

Limits member liability to unpaid shares. Ex: Rs4/share unpaid. Relevance: Limited liability.

Capital Clause

Authorised capital/shares. Ex: Rs25L in 2.5L shares Rs10. Relevance: Max raise limit.

Statutory Declaration

Compliance affirmation (CS/CA). Ex: All reqs met. Relevance: ROC satisfaction.

Certificate of Incorporation

Birth certificate; conclusive evidence. Ex: Forged sigs still valid. Relevance: Legal entity.

CIN

Corporate Identity Number (post-2000). Ex: Allotted by ROC. Relevance: Unique ID.

Prospectus

Invitation to public for shares. Ex: Full disclosure reqd. Relevance: Investor info.

Minimum Subscription

90% issue size (SEBI). Ex: Less = refund. Relevance: Adequate funds.

Underwriters

Guarantee subscription for commission. Ex: Buy unsold shares. Relevance: Risk cover.

One Person Company (OPC)

Single member co (2013 Act). Ex: Indian resident nominee. Relevance: Solo entrepreneurship.

Qualification Shares

Min shares directors buy. Ex: Pre-commencement pay. Relevance: Director stake.

Preliminary Contracts

Pre-incorp; not binding. Ex: Promoters liable. Relevance: Ratification needed.

DIN

Director Identification Number. Ex: One per individual. Relevance: Director ID.

SPICe+

Integrated e-form (advanced). Ex: Single filing for incorp. Relevance: 2025 digital.

e-MOA

Electronic MOA (advanced). Ex: Digital signatures. Relevance: Fast filing.

Tip: Group by stage; examples for recall. Depth: Debates (e.g., promoter profit). Errors: Confuse MOA/AOA. Historical: Companies Act 2013. Interlinks: To Ch5 business services. Advanced: MCA V3 portal. Real-Life: Startup docs. Graphs: Stages timeline. Coherent: Evidence → Interpretation. For easy learning: Flashcard per term with example.

60+ Questions & Answers - NCERT Based (Class 11) - From Exercises & Variations

Based on chapter + expansions. Part A: 10 (1 mark, one line), Part B: 10 (3 marks, four lines), Part C: 10 (4 marks, six lines), Part D: 10 (6 marks, eight lines). Answers point-wise in black text.

Part A: 1 Mark Questions (10 Qs - Short)

1. What is the first stage in company formation?

1 Mark Answer:

Promotion.

2. Who is a promoter as per Sec 69?

1 Mark Answer:

Person named in prospectus or controlling affairs.

3. Name one feasibility study.

1 Mark Answer:

Technical feasibility.

4. What is MOA?

1 Mark Answer:

Charter of company defining objectives.

5. Min signatories for public MOA?

1 Mark Answer:

Seven.

6. What is Certificate of Incorporation?

1 Mark Answer:

Birth certificate of company.

7. Define Prospectus.

1 Mark Answer:

Invitation to public for shares.

8. Min subscription per SEBI?

1 Mark Answer:

90% of issue.

9. What is OPC?

1 Mark Answer:

One Person Company.

10. Who signs Statutory Declaration?

1 Mark Answer:

CS/CA/Advocate.

Part B: 3 Marks Questions (10 Qs - Medium, Exactly 4 Lines Each)

1. List promoter functions.

3 Marks Answer:

Identify opportunity.
Feasibility studies.
Name approval.
Example: Avtar's technical check.

2. Explain Name Clause.

3 Marks Answer:

Avoid identical/misleading.
No Emblem Act violation.
3 names to ROC.
Example: No "India" patronage.

3. State MOA clauses.

3 Marks Answer:

Name, Office, Objects.
Liability, Capital.
Example: Objects define purpose.
Table A-E forms.

4. What is AOA?

3 Marks Answer:

Internal rules.
Subsidiary to MOA.
Example: Qualification shares.
Table F-J forms.

5. Describe Certificate effect.

3 Marks Answer:

Conclusive evidence.
Legal entity birth.
Example: Forged sigs valid.
CIN allotted.

6. Explain Prospectus filing.

3 Marks Answer:

Copy to ROC.
Full disclosure.
Example: No misstatement.
Investor protection.

7. What is Min Subscription?

3 Marks Answer:

90% issue size.
Refund if less.
Example: Underfund prevention.
SEBI guideline.

8. State OPC features.

3 Marks Answer:

Single member.
Indian resident nominee.
Example: No public issue.
Convert after 2 yrs if limits exceed.

9. Promoter position?

3 Marks Answer:

Fiduciary, no secret profit.
Pre-incorp liable.
Example: Reimbursable expenses.
Not agent/trustee.

10. DIN purpose?

3 Marks Answer:

Director ID.
One per individual.
Example: MCA application.
Within 1 month.

Part C: 4 Marks Questions (10 Qs - Medium-Long, Exactly 6 Lines Each)

1. Explain promotion steps.

4 Marks Answer:

Idea identification.
Feasibility (tech/fin/econ).
Name approval.
Signatories fix, pros appoint.
Docs prepare.
Example: Avtar funds estimate.

2. Describe MOA importance.

4 Marks Answer:

Defines objectives.
5 clauses essential.
No beyond acts valid.
Example: Objects clause limits.
Min signatories.
Table forms.

3. Distinguish MOA AOA.

4 Marks Answer:

MOA: Charter, external.
AOA: Rules, internal.
MOA superior.
Example: Beyond MOA invalid.
AOA ratifiable.
Table differences.

4. Outline incorporation docs.

4 Marks Answer:

MOA/AOA signed.
Director consent.
Agreement, declaration.
Name letter, fee.
Example: 7/2 signatories.
ROC scrutiny.

5. Explain capital steps.

4 Marks Answer:

SEBI approval.
Prospectus file.
Appoint bankers etc.
Min sub, listing.
Allotment return.
Example: 90% reqd.

6. Promoter functions detail.

4 Marks Answer:

Opportunity ID.
Studies (tech: material; fin: funds; econ: profit).
Name, signatories.
Pros, docs.
Example: Avtar metal issue.
Positive results launch.

7. Certificate conclusiveness.

4 Marks Answer:

Legal birth evidence.
Validates flaws.
Example: Wrong date/forgery ok.
Perpetual succession.
Illegal objects: Wind up only.
CIN post-2000.

8. OPC characteristics.

4 Marks Answer:

One natural Indian member.
Nominee reqd.
No minor/NBFC.
Example: 182 days residency.
Convert if limits exceed.
2013 Act benefit.

9. Preliminary contracts.

4 Marks Answer:

Pre-incorp by promoters.
Not binding on co.
Promoters liable.
Example: Fresh contract post-birth.
No ratification.
Personal liability.

10. Qualification shares.

4 Marks Answer:

Min for directors.
Pay pre-commencement.
AOA provision.
Example: Stake ensure.
Consent with undertaking.
Director commitment.

Part D: 6 Marks Questions (10 Qs - Long, Exactly 8 Lines Each)

1. Discuss formation stages with Avtar.

6 Marks Answer:

Promotion: Idea/feasibility (Avtar carburettor risk).
Incorporation: Docs/Certificate.
Capital: Public funds (skipped private).
Example: Avtar vs partnership.
2025: Digital stages.
Sequential for legal entity.
Private skips sub.
ROC central.

2. Elaborate MOA clauses.

6 Marks Answer:

Name: Approved.
Office: State (address 30 days).
Objects: Purpose (main/incidental).
Liability: Unpaid shares.
Capital: Authorised/shares.
Example: Rs4/share limit.
Signatories undertake.
Table A-E.

3. Explain incorporation process.

6 Marks Answer:

Application to ROC.
Docs: MOA/AOA etc.
Scrutiny, fee.
Certificate: Conclusive.
Example: 6th Jan contracts valid if cert 8th.
DIN reqd.
2025: SPICe+ form.
Birth with CIN.

4. Describe capital subscription.

6 Marks Answer:

SEBI approval/disclosures.
Prospectus to ROC.
Bankers/brokers/underwriters.
90% min, listing.
Allotment/refund.
Example: 10 weeks exchange.
Private: Statement lieu.
Investor protection.

5. Promoter role & position.

6 Marks Answer:

Functions: ID/studies/name/docs.
Fiduciary: Disclose profits.
Liable pre-incorp.
Example: No secret gain.
Reimbursable expenses.
Not agent/trustee.
Damages if non-disclose.
Avtar initiative.

6. MOA vs AOA differences.

6 Marks Answer:

Objectives: MOA external, AOA internal.
Position: MOA main, AOA subsidiary.
Validity: MOA invalid beyond, AOA ratifiable.
Necessity: MOA always, AOA optional Table F.
Example: MOA objects limit.
Relationship: Company-outsiders vs members-co.
Subordinate to Act.
Key distinction.

7. OPC concept.

6 Marks Answer:

Single person co (2013).
Eligibility: Natural Indian, 182 days resident.
Nominee, no minor.
Limits: No NBFC, convert 2 yrs if >50L cap/2Cr turnover.
Example: Micro business ease.
Benefits: Limited liability.
Irani Committee rec.
Encourages solo ventures.

8. Certificate importance.

6 Marks Answer:

Conclusive regularity.
Perpetual entity.
Example: 6th Jan existence if cert says so.
Valid contracts post.
Wind up for illegal.
180 days commencement.
CIN unique.
ROC careful issuance.

9. Feasibility studies.

6 Marks Answer:

Technical: Tech/material avail.
Financial: Funds estimate.
Economic: Profit chance.
Example: Avtar metal import.
Township crores abandon.
Experts aid (not promoters).
Positive: Launch.
Risk mitigate.

10. Incorporation docs detail.

6 Marks Answer:

MOA: Stamped, 7/2 sigs.
AOA: Witnessed.
Consent: Qualification shares.
Agreement: MD.
Declaration: Compliance.
Name approval, fee.
Office notice optional.
ROC satisfied issues cert.

Tip: Diagrams for stages; practice lines. Additional 30 Qs: Case variations, clause scenarios.

Key Concepts - In-Depth Exploration

Core ideas with examples, pitfalls, interlinks. Expanded: All concepts with steps/examples/pitfalls for easy learning. Depth: Debates, analysis.

Promotion Stage

Steps: 1. Idea ID, 2. Studies, 3. Name/docs. Ex: Avtar. Pitfall: Skip feasibility. Interlink: Leads to incorp. Depth: Risk debate.

Incorporation

Steps: 1. File docs, 2. ROC check, 3. Cert. Ex: CIN. Pitfall: Incomplete docs. Interlink: Enables capital. Depth: Conclusiveness protection.

Capital Subscription

Steps: 1. SEBI, 2. Prospectus, 3. Allot. Ex: 90% min. Pitfall: Misstatement. Interlink: Post-incorp. Depth: Investor safety.

MOA Clauses

Steps: 1. Name approve, 2. Objects define, 3. Capital set. Ex: Liability limit. Pitfall: Vague objects. Interlink: AOA subsidiary. Depth: Ultra vires.

Promoter Role

Steps: 1. Assemble resources, 2. Fiduciary act, 3. Liable pre. Ex: No secret profit. Pitfall: Non-disclose. Interlink: Functions. Depth: Liability balance.

OPC

Steps: 1. Single member, 2. Nominee, 3. Limits check. Ex: Convert rules. Pitfall: Multiple cos. Interlink: Private variant. Depth: Entrepreneurship aid.

Preliminary Contracts

Steps: 1. Promoter signs, 2. Co ratifies post, 3. Fresh if needed. Ex: Personal liability. Pitfall: Assume binding. Interlink: Promotion. Depth: Legal gap.

Certificate Conclusiveness

Steps: 1. Issue post-scrutiny, 2. Validates all, 3. Entity born. Ex: Forgery ok. Pitfall: Question post-issue. Interlink: Birth. Depth: Certainty vs fraud.

Min Subscription

Steps: 1. 90% achieve, 2. Allot or refund, 3. Return file. Ex: SEBI protect. Pitfall: Proceed under. Interlink: Allotment. Depth: Funding ensure.

DIN

Steps: 1. Apply MCA, 2. Allot 1 month, 3. Unique. Ex: No duplicate. Pitfall: Multiple apply. Interlink: Directors. Depth: Governance.

Qualification Shares

Steps: 1. AOA specify, 2. Buy pre-comm, 3. Consent. Ex: Director stake. Pitfall: Non-purchase. Interlink: AOA. Depth: Commitment.

Prospectus

Steps: 1. Draft disclose, 2. File ROC, 3. Issue public. Ex: No conceal. Pitfall: Mislead. Interlink: SEBI. Depth: Transparency.

Advanced: Ethical checklists, doc checklists. Pitfalls: Imbalance stages. Interlinks: To Ch9 financing. Real: Startup agility. Depth: 12 concepts details. Examples: Real cases. Graphs: Flowchart. Errors: Skip min sub. Tips: Steps evidence; compare tables (MOA/AOA).

Solved Examples - From Text with Simple Explanations

Expanded with evidence, calcs; focus on applications, analysis. Added stage application, clause balancing.

Example 1: Feasibility in Avtar

Simple Explanation: Viability check.

Step 1: Technical - Metal import fail.
Step 2: Financial - Crores needed.
Step 3: Economic - Profit low.
Step 4: Abandon or adapt.
Step 5: Proceed if positive.
Simple Way: Test before invest.

Example 2: MOA Capital Clause

Simple Explanation: Limit set.

Step 1: Authorise Rs25L.
Step 2: Divide 2.5L Rs10 shares.
Step 3: No excess issue.
Step 4: Signatories subscribe.
Step 5: Amend if needed.
Simple Way: Max bucket fill.

Example 3: Certificate Conclusiveness

Simple Explanation: Final proof.

Step 1: File docs 6th Jan.
Step 2: Cert issued 8th, dated 6th.
Step 3: 6th contracts valid.
Step 4: Forgery ignored.
Step 5: Entity exists.
Simple Way: Stamp seals all.

Example 4: Min Subscription

Simple Explanation: Fund ensure.

Step 1: Issue Rs10L.
Step 2: 90% Rs9L needed.
Step 3: Rs8L received - refund.
Step 4: No allotment.
Step 5: Return 8 days.
Simple Way: 90% or bust.

Example 5: Promoter Liability

Simple Explanation: Duty hold.

Step 1: Sign pre-contract.
Step 2: Co incorp, ratify or fresh.
Step 3: Non-disclose profit - rescind.
Step 4: Damages claim.
Step 5: Reimburse ok.
Simple Way: Full reveal or pay.

Example 6: OPC Formation

Simple Explanation: Solo setup.

Step 1: Indian resident sole member.
Step 2: Nominee appoint.
Step 3: File MOA with nominee.
Step 4: ROC incorp.
Step 5: Monitor limits.
Simple Way: One-man band rules.

Tip: Practice self-assess; troubleshoot (e.g., doc errors). Added for stages, docs.

Quick Revision Notes & Mnemonics

Concise, easy-to-learn summaries for all subtopics. Structured in tables for quick scan: Key points, examples, mnemonics. Covers stages, promoters, docs, OPC. Bold key terms; short phrases for fast reading.

Subtopic	Key Points	Examples	Mnemonics/Tips
Stages	Promotion: Idea/feasibility/name/docs. Incorporation: ROC filing/cert. Capital Sub: SEBI/prospectus/allot (public only).	Avtar: Promotion risk; Cert: Birth.	PIC (Promotion, Incorp, Capital). Tip: "Promote to Incorporate Capital" – Sequence flow.
Promoters	Functions: ID/studies (tech/fin/econ)/name/signatories/pros/docs. Position: Fiduciary, liable pre, no secret profit.	Avtar: Metal tech; No trustee.	IFEND (ID, Feas, Name, Sign, Docs). Tip: "Promote Fairly, Earn Nothing Secret" – Duty recall.
MOA	Clauses: Name/Office/Objects/Liability/Capital. Forms: Table A-E; 7/2 sigs. Role: Charter, external, invalid beyond.	Objects: Purpose; Liability: Unpaid.	NOOLC (Name, Office, Objects, Liab, Cap). Tip: "New Office Offers Limited Capital" – Clause order.
AOA	Role: Internal rules, subsidiary MOA. Forms: Table F-J; Ratifiable. Contents: Shares/calls/directors/meetings.	Qual shares; 33 matters.	SIAR (Subsidiary, Internal, Amendable, Ratify). Tip: "AOA Assists MOA Always" – Hierarchy.
Incorporation	Docs: MOA/AOA/consent/declar/fee. Cert: Conclusive, CIN, 180 days commence. DIN: Director ID, unique.	Forgery valid; Pre contracts liable.	MACD (MOA, AOA, Consent, Declar). Tip: "Cert Confirms Company" – Birth seal.
Capital Sub	Steps: SEBI/prospectus/appoint/min sub/listing/allot. Min: 90%; Underwriters guarantee.	Prospectus disclose; Refund <90%.	SPLMA (SEBI, Pros, List, Min, Allot). Tip: "Subscribe Publicly, List Minimum Allot" – Public flow.
OPC	Features: Single Indian, nominee, no NBFC. Limits: Convert 2yrs if >50L/2Cr. Benefit: Ease for micro.	182 days resident; Irani rec.	SNLC (Single, Nominee, Limits, Convert). Tip: "One Person Company: Solo Nominee Leads Change" – Solo setup.
Name Clause	Undesirable: Identical/mislead/Emblem. Process: 3 names to ROC.	No UNO/Govt patronage.	IME (Identical, Mislead, Emblem). Tip: "Name Must Not Imitate/Mislead/Emblem" – Rejection reasons.

Overall Tip: Use PIC-MOOLC-SPLMA for full scan (5 mins). Flashcards: Front (term), Back (points + mnemonic). Print table for wall revision. Covers 100% chapter – easy for exams!

Key Terms & Processes - All Key

Expanded table 30+ rows; quick ref. Added advanced (e.g., SPICe+, e-MOA).

Term/Process	Description	Example	Usage
Promotion	Idea to feasibility	Avtar carb	First stage
Promoter	Forming person	Sec 69 control	Fiduciary
Technical Feasibility	Tech avail	Metal import	Viability
Financial Feasibility	Funds estimate	Crores township	Cost check
Economic Feasibility	Profit chance	Low return	Profit test
Name Clause	Undesirable rules	No identical	Approval
MOA	Charter docs	5 clauses	External
AOA	Internal rules	Qual shares	Subsidiary
Objects Clause	Purpose define	Main/incidental	Limit acts
Liability Clause	Unpaid limit	Rs4/share	Member protect
Capital Clause	Authorised shares	Rs25L 2.5L	Max raise
Statutory Declaration	Compliance affirm	CS sign	ROC req
Certificate Incorp	Birth evidence	Conclusive	Legal entity
CIN	Corp ID	Post-2000	Unique
Prospectus	Public invite	Disclose all	Shares sell
Min Subscription	90% issue	Refund less	Adequate fund
Underwriters	Guarantee buy	Commission	Risk cover
OPC	Single member	Nominee	Solo biz
Qualification Shares	Director min	Pre-comm pay	Stake ensure
Preliminary Contracts	Pre-incorp	Promoter liable	Not binding
DIN	Director ID	One only	Gov req
SPICe+	e-Form integrated	Single filing	2025 digital
e-MOA	Electronic MOA	Digital sig	Fast incorp
Ultra Vires	Beyond objects	Invalid act	MOA limit
Fiduciary	Trust position	No secret profit	Promoter duty
Emblem Act	Name prevent misuse	No UNO	National protect
Return Allotment	Post-allot file	30 days ROC	Compliance
Stock Exchange Listing	Permission deal	10 weeks	Trading enable
SEBI Approval	Disclosure guide	Investor protect	Public issue
Commencement Cert	Business start	180 days	Operations ok
Irani Committee	OPC rec 2005	Ease micro	2013 impl
Table A	MOA shares ltd	Form use	Standard
Table F	AOA shares ltd	Internal	Model